Zalando shares fell sharply in early European trading on Tuesday, dropping 17.5% to 24.01 euros.
The steep decline followed the release of disappointing second-quarter financial results for the German online fashion retailer.
The sell-off marks a significant repricing of the stock, extending losses that began in pre-open trading.
According to Ekstrabladet, the market reaction was immediate and severe as investors digested the weak quarterly performance.
This latest drop adds to a series of headwinds for the company.
Handelsavisen previously reported that Zalando shares fell 9% in pre-open trading after the company issued a cautious outlook for 2026, forecasting that full-year revenue and growth would land in the lower half of guidance.